Global sales volume was 1.261 million units, exceeding the full year sales projection announced in February by 21,000 units. This positive result was due to market share that has been improved or maintained in major markets because of a competitive product lineup.

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Free cash flow (operating and investing activities) in the fourth quarter of FY2008 was positive 67.5 billion yen due to the progress made in optimizing inventory.

Mazda’s global retail volume in FY2008 was 1,261,000 units, due to a sharp downturn in the business environment that started in the second half of FY2008.

In China, Mazda increased sales 33 percent year-on-year, to 135,000 units. Sales volume in Japan was 219,000 units, down 15 percent year-on-year, although the newly launched Mazda Biante and Mazda Atenza (known as Mazda6 overseas) models had a positive impact on sales. North American sales amounted to 347,000 units in FY2008, down 14 percent compared to the previous year. However, Mazda’s market share in the US improved by 0.1 points, to 2.0 percent. Retail sales in Europe reached 322,000 units, down 2 percent compared to FY200７, though market share increased 0.2 points to 1.7 percent.

In other global markets, combined total sales volume decreased 13 percent year-on-year to 238,000 units. In Australia, Mazda’s largest market in this category, sales reached 77,000 units, with a record market share of 8 percent, up 0.5 points compared to the previous fiscal year.

FY2009 Full Year Forecast
With challenging business conditions expected to continue from FY2008 into FY2009, Mazda forecasts its sales revenue to be 2,030 billion yen. Mazda projects an operating loss of 50 billion yen and a net loss of 50 billion yen. This outlook for an operating loss is based on continued weak demand which is anticipated for the first half of FY2009, and the residual impact of inventory adjustments. However, an operating profit is forecast in the second half of the fiscal year, due to expected full contributions from the all-new Mazda3, and gains from further cost reduction efforts. Mazda will also focus on achieving positive free cash flow during the fiscal year. Due to continuing weak demand in major markets which began in the second half of FY2008, global retail sales volume is projected to be 1.1 million units in FY2009, a year-on-year decrease of 161,000 units. However, Mazda aims to improve or maintain its market share in key markets.

As a result of the deterioration in the operating environment, Mazda will forgo a year-end dividend in FY2008, and plans a dividend of 3 yen per share for FY2009.

Disclaimer
The projections for FY2009 and future outlook shown in this press release are based on various uncertainties including without limitation the conditions of the world economy in the future, automotive industry trends and the risk of exchange rate fluctuations. Please be aware that Mazda’s actual performance may differ substantially from these projections. Please note that neither Mazda nor any third party providing information shall be responsible for any damage an individual may suffer due to investment in Mazda based on the information contained in this press release.

For additional financial information, please visit the Investor Relations section in the Mazda official website at www.mazda.com/investors/.